New U.S. Supreme Court Decision Will Likely Impact Data Breach Litigation

Rebecca J. Schwartz  writes:

On February 26, 2013, the United States Supreme Court in Clapper v. Amnesty International  confirmed a demanding threshold showing for plaintiffs suing based on increased risk of harm in privacy-related.  The decision effectively resolves a circuit split over the application of the Article III standing requirement in data breach cases.  Plaintiffs must show that the threatened harm that establishes their standing to sue is “certainly impending,” not merely “possible.”  Given that many consumers cannot plead or prove that exposure of their data has resulted, or will result, in identity theft or any other financial injury, the high court’s recent decision should prove very useful to companies seeking early dismissal of individual or class action data breach litigation.

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